Panasonic's troubled mobile division that tried and failed to appeal to smartphone buyers is on the way out.

Kazuhiro Tsuga, Panasonic's president, told Reuters in an interview published Wednesday that the company's mobile division will no longer produce consumer-focused smartphones. Panasonic will, however, continue to deliver smartphones for business use.

Speaking to Reuters, Tsuga said his company's performance in the consumer smartphone market is "not acceptable," adding that Panasonic needs to find ways to improve its operation. The company expects its mobile division to lose over $11 million during the current fiscal year.